South East Asia Bottled Water Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

South East Asia Bottled Water Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Southeast Asia bottled water market is projected to grow at a CAGR of 11.39% during the forecast period (2022 - 2027).

The COVID-19 lockdown caused a sudden surge in bottled water demand during the pandemic's initial months. People were stocking up on essentials, and packaged drinking water was one of them, which meant retailers sold out of items faster than usual in countries like Singapore, Thailand, and Malaysia. To keep up, manufacturers had to ramp up production, and many corporations donated to relief efforts to aid health care professionals and those at risk. The International Bottled Water Association (IBWA), a trade association of bottled water makers, took several measures to ensure availability, including boosting bottling capacity and procuring more materials.

Changing customer preferences and growing demand for clean and safe drinking water aids the bottled water market in South East Asia grow exponentially. Rising South East Asian disposable income and rapid industrialization are driving the bottled water market and are gaining a higher sales revenue for the market players.

Countries such as Indonesia, Philippines, Thailand, and Malaysia in the Southeast Asian region are categorized under newly industrialized countries globally, which leads to a rapid expansion for bottled water industries, providing high growth potential. Observing the difference in the quality of the product, consumers prefer global players over domestic players, resulting in the domestic players not gaining a higher market share.

The still bottled water segment accounts for the highest market share, with 67.44%, followed by carbonated water, flavored water, and functional water. In 2021, the consumption of one in five non-alcoholic beverages was still bottled water. This increase in consumption is directly proportional to the increase in demand from the region's population. Consumers have majorly substituted soft drinks with still bottled water to cut down their sugar and calorie intake. This trend has led to an increase in the region's still water market. Moreover, the consumer's perception of the hazardous nature of tap water is also boosting the demand for still bottled water in the region. The promotional strategies adopted by players, including advertisement campaigns, are leading to an increase in the demand for still bottled waters.

Bottled water is a safe choice among consumers daily, even during seasonal shortages or emergencies. The region has several nations with high tourist attractions throughout the year, including Thailand, Indonesia, Vietnam, Singapore, and Malaysia. This drives the overall market for bottled water, especially with the increasing demand for and penetration of flavored and functional waters. The still bottled water segment accounts for the major market share (65%) in the Indonesian bottled water market. Key players, like Danone Aqua, hold the maximum market share due to the high distribution network, multiple production facilities, brand value, and reputation for providing good quality, safe drinking water. In 2021, the still water segment dominated the market, with the highest revenue, followed by carbonated, flavored, and functional water.

The Southeast Asian bottled water market is fragmented, and some prominent players include Danone, Coco-Cola, Nestle, and PepsiCo. The individual nations are dominated by a combination of players. For instance: In Thailand, the market is dominated by players such as Singha, Nestle, PepsiCo, and Coco-Cola. Other players include Spritzer, Vinh Hao Mineral Water Corporation, Asian Brewery, Singha Corporation Co. Ltd, and others. Though the bottled water market doesn’t have much product innovation, companies are trying new product launches as the next strategy to strengthen their market dominance, especially in the flavored and functional bottled water market.

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